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49
In January 2008, the FASB issued guidance within ASC Topic 260, “Earnings Per Share.” ASC Topic
260 requires that unvested share-based payment awards that contain nonforfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are participating securities and should be included in the two-
class method of computing earnings per share. ASC Topic 260 is effective for fiscal years beginning after
December 15, 2008. The adoption of ASC Topic 260 did not have a material impact on our consolidated
financial statements.
In December 2007, the FASB issued guidance within ASC Topic 805-20, “Identifiable Assets and
Liabilities, And Any Noncontrolling Interest,” and ASC Topic 810-10-65, relating to consolidations. ASC
Topic 805-20 requires an acquirer to measure the identifiable assets acquired, the liabilities assumed and any
noncontrolling interest in the acquiree at their fair values on the acquisition date, with goodwill being the
excess value over the net identifiable assets acquired. This guidance also requires the fair value measurement
of certain other assets and liabilities related to the acquisition such as contingencies. ASC Topic 805-20
applies prospectively to business combinations and is effective for fiscal years beginning on or after
December 15, 2008.
ASC Topic 810-10-65 requires that a noncontrolling interest in a subsidiary be reported as equity in the
consolidated financial statements. Consolidated net income includes the net income for both the parent and
the noncontrolling interest with disclosure of both amounts on the consolidated statement of income. The
calculation of earnings per share continues to be based on income amounts attributable to the parent. The
presentation provisions of ASC Topic 810-10-65 are applied retrospectively, and ASC Topic 810-10-65 is
effective for fiscal years beginning on or after December 15, 2008. The adoption of ASC Topic 805-20 did
not have a material impact on our consolidated financial statements. The cumulative impact of the adoption
of ASC Topic 810-10-65 and ASC Topic 480-10 (discussed above) on our consolidated financial statements
was to decrease Additional paid-in capital by $93.4 million and increase Noncontrolling interests by $3.2
million as of December 30, 2006.
New Accounting Pronouncements Not Yet Adopted
During January 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-06, “Fair Value
Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements.” ASU
2010-06 includes new disclosure requirements related to fair value measurements, including transfers in and
out of Levels 1 and 2 and information about purchases, sales, issuances and settlements for Level 3 fair value
measurements. This update also clarifies existing disclosure requirements relating to levels of disaggregation
and disclosures of inputs and valuation techniques. The new disclosures are required in interim and annual
reporting periods beginning after December 15, 2009, except the disclosures relating to Level 3 activity are
effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years.
We are currently evaluating the potential impact that these provisions within ASU 2010-06 will have on our
consolidated financial statements.
During October 2009, the FASB issued ASU 2009-13 which amended guidance contained within ASC
Topic 605-25 related to revenue recognition for multiple-element arrangements. The amendments in this
update establish a selling price hierarchy for determining the selling price of a deliverable. These
amendments also will replace the term fair value in the revenue allocation guidance with selling price to
clarify that the allocation of revenue is based on entity-specific assumptions rather than assumptions of a
marketplace participant. The guidance in this update will require that a vendor determine its best estimate of
selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a
standalone basis. The amendments in this update will be effective prospectively for revenue arrangements
entered into or materially modified in fiscal years beginning on or after June 15, 2010. We are currently
evaluating the potential impact that these provisions within ASU 2009-13 will have on our consolidated
financial statements.